Core inflation concerns, elections in focus

The October CPI figures out of the region this week, which showed a marked strengthening of core inflation, are likely to ring alarm bells for central banks in the region and may trigger larger rate hikes in Brazil and Chile next month. Politics is likely to be centre of attention next week, with Chile’s presidential election entering the final straight, while the results of Argentina’s mid-term elections on Sunday are likely to determine the chances of a new IMF deal.